The small screen and keyboard would be limiting anyway. But we'll see.
I think people will adapt to the size, just like some people can create text messages at the speed of light. I'm really hoping it will be usable as a PDA / note-taking device.
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Bedtime surfing and video playback, definitely.
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And perhaps the most fun thing will be seeing what homebrew devs come up with.
I agree - I think that being part of that journey and watching things unfold, trying stuff out etc is going to be a lot of fun.
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I would have no problem calling it a "gaming UMPC" - that's really what it is IMO. And it's one of a kind.
Shame we don't have a good moniker or TLA that everyone was happy with - then we needn't discuss it further.